TMI Blog1989 (3) TMI 364X X X X Extracts X X X X X X X X Extracts X X X X ..... Appellate Assistant Commissioner to decide the assessability of the additional turnover on merits". 2.. The order of reference in this case reads as follows: "In this tax case, the point raised by the assessee is that the Tribunal has erroneously refused to entertain its objection regarding an exemption from assessment of purchase turnover of raw hides and skins amounting to Rs. 8,97,014.34. This purchase turnover was included in the assessment, among other amounts, in the total taxable turnover. The assessee appealed against this assessment on 13th June, 1971. In the memorandum of appeal, the assessee did not question the inclusion in the assessment of the purchase turnover of Rs. 8,97,014.34. However, the assessee filed an additional ground before the Appellate Assistant Commissioner on 25th August, 1971, in and by which the assessee put forward its objection to the inclusion of the said turnover in the assessment. The Appellate Assistant Commissioner disposed of the appeal by order dated 31st March, 1975. While doing so, he dealt only with the ground raised in the original memorandum of appeal filed before him by the assessee, and completely overlooked the ground raised by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he wide scope of the powers exercisable by the Appellate Assistant Commissioner while disposing of an appeal against an assessment, it would be implicit in the provisions that an additional ground of appeal cannot be regarded as something quite apart from the appeal itself. The question whether the statute allows scope for an additional ground would not seem to pose any problem of construction. In the course of arguments before us, reference was made to the decision of a Bench of this Court in State of Tamil Nadu v. Siemens Engineering and Manufacturing Company [1977] 39 STC 285. The pertinent question for decision in that case was whether an assessee, who failed to raise a dispute in the memorandum of appeal filed by him before the Appellate Assistant Commissioner, could put forward his objection by way of an additional ground subsequent to the filing of the appeal and at the hearing of the appeal. This Court expressed the view that the provisions of the Act do not contemplate the acceptance by the Appellate Assistant Commissioner of an additional ground raising the dispute with reference to a turnover which does not figure in the original grounds of appeal. For coming to this c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orders." 3.. Section 31 of the Act, as it stood at the relevant point of time, before the amendments introduced in 1986, read as follows: "31. (1) Any person objecting to an order passed by the appropriate authority under section 12, section 14, section 15, sub-sections (1) and (2) of section 16, section 18, section 23, section 27, sub-section (4) of section 41, or sub-section (3) of section 42, may, within a period of thirty days from the date on which the order was served on him in the manner prescribed, appeal against such order to the Appellate Assistant Commissioner: Provided that the Appellate Assistant Commissioner may admit an appeal presented after the expiration of the said period if he is satisfied that the appellant had sufficient cause for not presenting the appeal within the said period: Provided further that in the case of an order under section 12, section 14, section 15 or sub-sections (1) and (2) of section 16, no appeal shall be entertained under this sub-section unless it is accompanied by satisfactory proof of the payment of the tax admitted by the appellant to be due or of such instalments thereof as might have become payable, as the case may be. (2) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y shall, after giving the appellant reasonable opportunity of being heard, pass such orders on the appeal as such authority thinks fit subject to the provisions of sub-section (3) of section 31. (6) The order of transfer of appeals issued by the Chairman of the Appellate Tribunal under section 34-A shall be communicated to the appellant, to every other party affected by the order, to the authority against whose order the appeal was preferred and also to the Appellate Assistant Commissioner having jurisdiction." *Form I, spoken to in the rule, is annexed to this order. Clause 6 of form I speaks about "relief claimed in appeal". It has got four subclauses. Sub-clause (a) refers to "turnover determined by the assessing authority". Sub-clause (b) speaks about "if turnover is disputed" (i) disputed turnover; (ii) tax due on the disputed turnover". Sub-clause (c) refers to "if rate of tax is disputed-(i) turnover involved; (ii) amount of tax disputed". Sub-clause (d) refers to "any other relief claimed". 4.. From a bare reading of either section 31 or rule 27 or form I, we do not find any express embargo put on the appellate authority in entertaining subsequently any additional g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dinary civil litigation to bring in a notion of prejudice to the other side. The hearing of the assessing authority is only for the purposes of deciding the taxpayer's liability and it is not a case of one litigant being pitted against another with regard to any private rights involved. Ultimately, the decision should be with regard to the taxpayer's liability. We could not uphold the stringent view of the Division Bench in State of Tamil Nadu v. Siemens Engineering and Manufacturing Company of India Limited [1977] 39 STC 285 (Mad.) that "when an assessee goes up in appeal though he exposes the assessment order in its entirety to the scrutiny and enhancement by the Appellate Assistant Commissioner, so far as the assessee is concerned, the Appellate Assistant Commissioner could not give any relief apart from the one, which he had claimed in clause 6 of form I set out above". Of course, the Division Bench refers to an earlier pronouncement of this Court in State of Madras v. Voltas Ltd.: No. 2 [1963] 14 STC 861. The Division Bench also distinguishes the cases arising under the provisions of the Income-tax Act. But there are recent pronouncements of this Court, taking views contrary ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inistrative act of adjusting the taxpayer's liability. Under our fiscal jurisprudence, we may regard the appellate authorities as exercising quasi-judicial functions in the same sense as a taxing officer does. But, even so, the proceedings before them lack the basic elements of adversary proceedings. It, therefore, follows that the discussion and the scope of the appellate jurisdiction of the Tribunal and other authorities under the tax code cannot be pursued by drawing a parallel to civil litigation with particular reference to appeals from decrees, and the like. The insistence on one party to the appeal being entitled to the fruits of finality, as it is called, and the appellate authority being confined to the subject-matter of the appeal are all ideas which might have relevance if the discussion centres on purely civil litigation and such like adversary proceedings as in an industrial dispute. But in a case where the Revenue is all the while a party, in a manner of speaking, and is also at the same time, an authority vested with the responsibilities of drawing up the assessment and laying down the correct liability, it would not be in accord with the scheme of the Act to impos ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Manufacturing Company of India Limited [1977] 39 STC 285 and the same stands overruled. We answer this reference as above and we direct the tax case to go before the Division Bench to be dealt with on merits. We make no order as to costs. Reference answered accordingly. ANNEXURE FORM I Form of appeal under section 31 (See rule 27) To The Appellate Assistant Commissioner The day of 19 1. Name(s) of appellant(s) 2. Assessment year 3. Authority passing the original order in dispute 4. Date on which the order was communicated 5. Address to which notice may be sent to the appellant(s) 6. Relief claimed in appeal- (a) Turnover determined by the assessing authority (b) If turnover is disputed - (i) Disputed turnover (ii) Tax due on the disputed turnover (c) If rate of tax is disputed- (i) Turnover involved (ii) Amount of tax disputed (d) Any other relief claimed 7. Grounds of appeal, etc. (Signed) Appellant(s) (Signed) (Authorised representative, if any) VERIFICATION I/We the appellants) named in the above appeal do hereby declare that what is stated therein is true to the best of my/our knowledge and belief. Verified today the da ..... X X X X Extracts X X X X X X X X Extracts X X X X
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